Kolibri Global Energy (KGEI) Update - Mar 13

[dan_s]

Kolibri Global Energy Inc. (the “Company” or “KEI“) (TSX: KEI) is providing the results of its December 31, 2024, independent reserves evaluation. All amounts are in US$ unless otherwise stated.

Wolf Regener, President and CEO, commented: “We are very pleased with the large growth we had in Proved Reserves, which grew by 24% to 40.2 million barrels of oil equivalent (“BOEs”), as well as our Proved Developed Producing (“PDP“) reserves, which grew by 15% to 9 million BOEs. This growth is a result of the wells that we drilled last year and the impact of our longer laterals. In 2024, our percentage of PDP versus Total Proved reserves decreased to 22% from 24%, even though our PDP reserves grew, because our Proved reserves increased by 7.8 BOEs.

“We are also pleased that the Net Present Value (“NPV“) of the PDP reserves increased by 5% even as the forecast pricing used in the reserve report decreased compared to the prior year, and we produced over 1.27 million BOEs last year.

“Despite the lower pricing used in the reserve report, our Proved Reserves value of US$534.7 million (NPV discounted at 10%) increased by 11% from the 2023 independent reserves evaluation due to the increase in reserves. This results in a pre-tax per share value at December 31, 2024 of US$15.08/share or CAD$21.70/share.

“We look forward to continuing our success with the 4 Lovina wells (100% working interest), which we just started drilling. The drilling rig is scheduled to move over to drill the Forguson 17-20-3H well (Kolibri operated with 46% working interest) on our east side acreage immediately after the Lovina wells have been drilled. The east side acreage, where Kolibri has approximately 3,000 net acres, is not included in the reserve report. The Caney target for the Forguson well has very similar characteristics and thickness as in the main part of the field in Kolibri’s proved acreage, except that it is shallower. If the Forguson well proves to be economic, in addition to adding cash flow, it could lead to many additional development locations for the Company.

“We expect our 2025 drilling program, which currently includes drilling and completing seven longer lateral wells, as well as completing two previously drilled 1-mile laterals, to continue to significantly increase the Company’s cash flow and add incremental value to our shareholders.”

2024 Gross Reserves Summary

Total Proved Reserves of 40.2 million BOEs
an increase of 24% from the December 31, 2023, estimate
Proved plus Probable Reserves of 53.6 million BOEs
a decrease of 1% from the December 31, 2023, estimate
Proved plus Probable plus Possible Reserves of 71.5 million BOEs
a decrease of 10% from the December 31, 2023, estimate
Net Present Value of Reserves discounted at 10%

Total Proved Reserves before tax of US$534.7 million
an increase of 11% from the December 31, 2023, estimate
Proved plus Probable Reserves before tax of US$691.1 million
a decrease of 4% from the December 31, 2023, estimate
Proved plus Probable plus Possible Reserves before tax of US$904.7 million
a decrease of 8% from the December 31, 2023, estimate
The evaluation of the Company’s reserves in the Caney formation of the Tishomingo Field in the SCOOP area of Oklahoma was conducted by Netherland, Sewell & Associates, Inc. (“NSAI“) in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.

The above total Proved reserves are attributed to the 36 Caney wells, four Woodford wells (4.9% working interest for the Company), and the drilling of 39.95 net additional wells over the next five years. The Probable reserves are attributed to the drilling of 8.5 net additional wells over the next six years. The wells in NSAI’s 2024 report are planned at 107 to 213 acre spacing (6 wells per section) on approximately 17,134 net acres.

[Petroleum economist]

Kolibri Global reported excellent 2024 reserves results.

Proven reserves
• Kolibri proven reserves have been flat over the period 2019-2023, with a maximum of 34.1 M BoE (2021) and a minimum of 32.3 M BoE (2023).
• In 2024 the proven reserves increased with an impressive 8.1 M BoE (=24%) from 32.3 M BoE (2023) to 40.2 M BoE. The increase in the reserves was completely autonomous (=no acquisitions).
• The increase of reserves was the highest for NGL (+57%) and natural gas (+48%). Oil reserves increased with 13%. The 2024 reserves consist of 66% oil, 20% NGL and 20% gas.
• The reserves are equivalent to a very high 21.5 years of 2025 production (industry average (9.5-10 years).
• The 2024 probable reserves (53.5 M BoE) and potential reserves (71.6 M BoE) give hope more future proven reserves bookings.
• The Kolibri east side acreage (3,000 net acres) is not included in the reserves. The east side is the location where the Forguson 17-20-3H well (Kolibri operated, 46% working interest) will be drilled in mid-2025. If the Forguson well is successful then it will bring substantial additional reserves along.

Reserves Replacement Ratio (RRR)
• The 2024 reserves bookings have resulted in an extremely high 2024 RRR of 6.86.
• The 2024 RRR is only the second time in six years that Kolibri reported a RRR >1.0. The other time was a RRR of 3.71 in 2021.
• The RRR of the period 2019-2024 is now a very good. 2.02, well above industry average of 0.89-0.94.

Production
• Kolibri has not yet published its 2024 results These are targeted for 25th of March. The 2024 outlook is 32.-3.7 K BoE/d.
• The increased reserves should enable Kolibri to build it production to a levels of 12-14 K BoE/d.
• If the east side well is successful, then production levels of > 20.0 K BoE/d are possible.

Conclusions
Kolibri reported excellent 2024 reserves and RRR. A further step may come in mid-2025 if Kolibri can prove reserves in the east side.

Kolibri ranks second in my 84 oil and gas companies ranking. I will revise the Kolibri production profile in mid-2025 and this should move Kolibri back up into first place.